Here is a newpiece today from Bloomberg news : MARKET ON THE REBOUND. U.S. Stocks Near an `Important Bottom,' Biggs Says (Update2) By Elizabeth Stanton and Betty Liu Feb. 11 (Bloomberg) -- Barton Biggs, co-founder of hedge fund Traxis Partners LLC, said he's ``gradually increasing'' his holdings of U.S. equities because he doesn't expect a recession and shares are ``very, very cheap.'' Biggs, the former global investment strategist for Morgan Stanley, said in a Bloomberg Television interview that the market is ``at or very close to an important bottom'' and may be led higher by banks and brokerages when a rally occurs. Some financial companies may advance 20 percent to 25 percent over periods of two to three weeks, said Biggs, who helps manage $1.5 billion in Greenwich, Connecticut. The Standard & Poor's 500 Index fell 6.1 percent in January, its biggest monthly decline since September 2002 and its worst start to a year since 1990. During the month the index fell as much as 16 percent from its Oct. 9 record. Financial companies in the index fell almost 21 percent in 2007, the worst performance among 10 industry groups and their biggest drop since 1990. They trade for 14.8 times profits, compared with an average price-earnings ratio of 15.5 this decade, according to data compiled by Bloomberg. The S&P 500 trades for 18.1 times earnings, 31 percent below its monthly average this decade, according to data compiled by Bloomberg. Biggs correctly forecast U.S. equities would rebound from declines in March and August last year. On March 16, following a 5 percent decline by the S&P 500 from its Feb. 20 peak, he said stocks were approaching a bottom and predicted a gain of as much as 15 percent for the index in 2007. The S&P 500 rose as much as 12 percent from that level before retreating to end the year with a 3.5 percent gain. On Aug. 16, after a 9 percent decline by the index, Biggs said it was bottoming and predicted a rebound. The benchmark rose almost 11 percent over the next seven weeks. Last Updated: February 11, 2008 11:36 EST
Recession still not here yet, according to Fed Chairman Ben Bernankes sworn testimony before Senate panel. He could not be lying about it if you doubt his integrity under oath, YES? On top of that Feds have promised to keep cutting rates aggressively. That means we cannot have a recession after all or can we please, please ?
The last two days of rallies were short squeezs for the weak at heart, on the short side. Consumer spending was a bullshit number as "Gas Prices" were part of the equation. Retail numbers were weak IMHO. This market is going much much much lower. It will not be overnight. We shall bounce back and forth, making lower highs IMHO. Still short from Fed Rally and staying short. The recession is here. The pundits want the consumer to believe the there is not a recession. What you have is "disinformation" coming from the front lines. Those behind the lines see through the bullshit.
DEPRESSED DELUSIONARY SICKO! You know all about recessions and all about markets why do you still hang on to trade everyday making nickles and dimes ? Shut your one man business and take a walk on the wild side. Check in a $20 Motel room and hang your depressed carcass to a ceiling fan. At least they will find your spinning ass around the room in fetid air and not some motionless dummy stuffed in a corner.
FEDS will not raise rates till housing is bubbling with laughter.. Once they get on a bandwagon of rate cutting spree they don't stop for years. Do you know that or not from past experiences? How aggressively they inject liquidity into the society? Lending institutions get flushed with easy cash and checking and CD rates get down to 1- 2 % range thereby flushing that cash back into stocks and equities and real estate markets that again fuels a bull market to the max! Its a cycle they have been playing with for the last 60 years. You are just too young and naive at the moment. Have not seen anything I suppose?